A Public Forum On New Jersey Property Tax

Michigan State's Process for Property Tax Restructuring

Over the last seven years, New Jersey and the nation have watched to see how Michigan has progressed since its adoption of a major restructuring measure known as Plan A. It revised public education funding by revamping the historical property taxes.

In August 1998, The State of Michigan's Department of Treasury issued a report titled "Proposal A, A Restrospective" which describes the premise and details of the Plan A. The data which follows which reports on Michigan's experience is from that source and another State of Michigan's Department of Treasury source site below.

Several changes were made in the Michigan system in 1994 under Plan A. For a summary of the Michigan experience: History of Property Tax Revenues, Voters Choice at the Polls, and Major Tax Revenues since 1994, click on

Display of Michigan State's 1994 Plan A Property Tax Highlights

The Michigan Plan A key features are highlighted below in three segments:

Figure a- State of Michigan Plan A Property Tax Highlights

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Figure b - State of Michigan Plan A Property Tax Highlights

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Figure c - State of Michigan Plan A Property Tax Highlights

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This quote is taken from page 8 of the "Proposal A -- A Restrospective" Report:
"While results from the March 1994 referendum indicate that a clear majority (69 percent) of Michigan voters preferred the sales tax increase as a means to fund local schools, three other factors also contributed to Proposal A's success. First, the Ballot Plan cut homeowner millage rates more that the Statutory Plan. Second, the Ballot Plan increased the cigarette tax more than the Statutory Plan: voter sentiment was anti-tabacco. Third, the Ballot Plan placed a constitutional cap on property tax assessment increases; the Statutory Plan did not."

For more details, go to source Michigan General Propery Tax

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